India’s passenger vehicle industry recorded strong year-on-year growth in both wholesale and retail volumes in November 2025, driven by sustained post-festive demand, recent GST rate cuts and the winter wedding season, according to a report released on Thursday.
The report by ratings agency ICRA said retail sales rose 22 per cent year-on-year in November, although they declined 29 per cent compared to October’s festive peak.
Wholesale volumes increased 19 per cent year-on-year to 4.1 lakh units, as original equipment manufacturers (OEMs) maintained production levels to meet demand.
ICRA has forecast wholesale volume growth of 1–4 per cent in FY26, supported by steady demand, GST cuts, new model launches and sustained market momentum.
For the first eight months of FY26, wholesale growth stood at a modest 3.6 per cent year-on-year, compared to 6.1 per cent growth in retail sales, the report noted.
Inventory levels improved to 44–46 days by November 2025, down from 60 days at the end of September, according to data from the Federation of Automobile Dealers Associations (FADA), aided by stronger retail offtake.
Utility vehicles accounted for 67 per cent of total passenger vehicle volumes in November, slightly lower than 69 per cent in October, while the mini, compact and super-compact segments saw a revival following GST cuts.
Separately, another report said three-wheeler sales in India rose 21.3 per cent to 71,999 units in November, while two-wheeler sales jumped 21.2 per cent to 19,44,475 units.
The report added that continued supportive policy reforms and improving market sentiment are expected to sustain the growth momentum well into 2026.
Scooter sales grew a robust 29.4 per cent to 7,35,753 units, reflecting strong urban demand. Motorcycle sales increased 17.5 per cent to 11,63,751 units, supported by steady rural and semi-urban demand. Three-wheeler sales rose 24.6 per cent to 59,446 units in November, largely driven by passenger carriers.
Sales of goods carriers grew 10.9 per cent to 10,874 units during the month, the data showed. Meanwhile, passenger vehicle exports from India were supported by strong global demand, particularly from markets in the Middle East and Latin America.
— IANS
